70.2K

Verified Solution

Link Copied!

12. On January 1, Year 1, Nini's Company issued a 5-year $500,000 bond with a coupon rate of 10% and a market rate of 12%. Interest is paid quarterly on March 30, June 30, September 31, and December 31. a. Was the bond issued a discount, premium, or at face value? Premium Par Discount b. Determine the issue price and record the journal entry made on the date of issuance. Answer: c. Assuming Nini's Company holds the bond to maturity, how much total cash will Nini's Company pay to investors over the lifetime of the bond? Account Names Answer: d. Record the principal repayment journal entry Nini's Company will make on December 31, Year 5. Debit Credit

12. On January 1, Year 1, Nini's Company issued a 5-year $500,000 bond with a coupon rate of 10% and a market rate of 12%. Interest is paid quarterly on March 30 , June 30 , September 31 , and December 31 . a. Was the bond issued a discount, premium, or at face value? Premium Par Discount b. Determine the issue price and record the journal entry made on the date of issuance. Anewer: c. Assuming Nini's Company holds the bond to maturity, how much total cash will Nini's Company pay to investors over the lifetime of the bond? d. Record the principal repayment journal entry Nini's Company will make on December 31

Answer & Explanation Solved by verified expert

See Answer